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Retirement options for gig workers in Arizona (no state plan)
Your W-2 plan covers your paycheck. Gigaverse covers your hustle.
Status as of Oct 28, 2026.
No state-run auto-IRA
Arizona does not operate a state auto-IRA. Nothing in state law withholds retirement savings from a 1099 payment. A W-2 employer plan, or a city payroll program where one exists, covers that job's wages. Gigaverse is the layer for the 1099 income beside it, not a replacement for the plan the paycheck already has.
The 50-state status table is the state auto-IRA hub and the mandate tracker.
What the IRS counted in Arizona, tax year 2023
IRS Statistics of Income Historic Table 2 counts returns, not people. In tax year 2023, Arizona had 604,770 returns with Schedule C income, 17.8% of 3,391,030 returns in the state. 428,800 returns paid self-employment tax. 14,300 of those claimed the self-employed retirement-plan deduction, a rate of 3.3%. That deduction is the SEP, SIMPLE, or qualified-plan line. It does not measure Roth IRA contributions.
Arizona self-employment tax
Federal self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security, up to the $184,500 wage base in 2026, and 2.9% Medicare with no cap. Half of that tax is deductible. Arizona income tax is separate and is in the next section. A state auto-IRA, where one exists, does not replace this federal tax.
Self-employment tax calculator · 1099 estimated tax calculator
Arizona income tax on 1099 profit
Arizona's 2026 Form 140ES worksheet figures estimated individual income tax at 2.5% of Arizona taxable income. Federal income tax and self-employment tax are separate. A sole proprietor in a taxable business, such as retail or contracting, may also owe transaction privilege tax.
Arizona Department of Revenue, 2026 Form 140ES
Federal quarterly estimates are separate from the state. The 1099 quarterly tax calculator uses the federal dates and self-employment tax. State tax guides for Arizona cities are linked below and from Arizona local taxes.
No program is enacted
Arizona has no state auto-IRA. The introduced text of House Bill 4126 is on azleg.gov for the 2026 regular session. This page did not find a chapter number or a governor's signature, so the bill is not law. Phoenix, Tucson, Mesa, and Chandler gig workers are not in a state payroll IRA.
Read as introduced, the text would have required covered employers to auto-enroll employees at 5% unless they opt out, and it would have told the board to provide for self-employed individuals and independent contractors by rule. Those rates and dates are in a bill that did not become law. They are not a program a 1099 worker can join.
What a 1099 worker can use in 2026
These limits are federal. They do not change because Arizona has no state plan. Catch-up contributions are not part of the $72,000 annual-additions cap.
| Account | 2026 limit | Who it fits |
|---|---|---|
| IRA (Roth or traditional) | $7,500, or $8,600 at age 50 or older. The limit is shared across every IRA. | Earned income, including 1099 profit, within the Roth income limits if the account is a Roth. |
| SEP IRA | Generally up to 25% of compensation, and not more than $72,000 of annual additions. | Employer contribution from the business. A sole proprietor's percentage is computed after self-employment tax adjustments. |
| Solo 401(k) | Elective deferral $24,500. Catch-up $8,000 at 50 or older, or $11,250 at ages 60 through 63. Employer contributions share the $72,000 cap with deferrals, before catch-up. | A self-employed worker with no full-time W-2 employees in the plan, who wants both a deferral and an employer contribution. |
Sources: IRS IR-2025-111, Notice 2025-67, IRS 401(k) contribution limits.
Read the Solo 401(k) for self-employed workers page, then run a number in the SEP-IRA contribution calculator. Gigaverse account opening for the Solo 401(k), the SEP and the PRActicle Roth IRA is waitlist only.
Where Gigaverse fits
Gigaverse is not a state program and is not a registered investment adviser. It sits next to a W-2 plan or a state program when one exists. Plans are Free, Pro ($4.99/mo) and Wealth Builder ($9.99/mo). The Solo 401(k), SEP and PRActicle Roth IRA are waitlist only. Gigaverse's published figure is "$5K+" labeled "Avg. tax savings per year, per worker."
City guides and job guides
These are existing local tax pages, not copies of this retirement guide.
Phoenix · Tucson · Mesa · Gilbert · Chandler · Glendale · Scottsdale
Uber drivers · Lyft drivers · DoorDash drivers · Instacart shoppers · Amazon Flex drivers
Questions
Does Arizona run an auto-IRA for gig workers?
No. Arizona has no state-run auto-IRA in operation. A W-2 retirement plan, where one exists, covers that paycheck. It does not cover 1099 income. Status as of Oct 28, 2026.
Does Arizona tax 1099 income?
Arizona's 2026 Form 140ES worksheet figures estimated individual income tax at 2.5% of Arizona taxable income. Federal income tax and self-employment tax are separate. A sole proprietor in a taxable business, such as retail or contracting, may also owe transaction privilege tax.
How much can a 1099 worker contribute in 2026?
For 2026 the IRA limit is $7,500, or $8,600 at age 50 or older. A Solo 401(k) elective deferral is $24,500, plus a catch-up of $8,000 at 50 or older, or $11,250 instead at ages 60 through 63. Employer contributions plus deferrals are limited to $72,000 of annual additions, not counting catch-up. A SEP contribution is generally up to 25% of compensation, inside that same annual-additions cap. These figures are from IRS news release IR-2025-111, Notice 2025-67, and the IRS 401(k) contribution-limits page.
Did Arizona enact House Bill 4126?
No. Arizona has no enacted auto-IRA. The introduced text of House Bill 4126 is posted on azleg.gov for the 2026 regular session. This page did not find a chapter number or a governor's signature. The introduced text is not law.
What would the introduced Arizona bill have done for 1099 workers?
The introduced text would have let an eligible individual contribute to an IRA, required covered employers to auto-enroll employees at 5% unless they opt out, and told the board to make provision for people who are not employees, including self-employed individuals and independent contractors, by rule. Those dates and rates in the bill text are not in effect.
Sources
Status as of Oct 28, 2026. Verified 2026-10-28.
Educational information only, not tax or investment advice. Gigaverse AI, Inc. is not a bank and is not a registered investment adviser. We are not affiliated with Arizona, DoorDash, or any state or city retirement program. Contribution limits are set by the IRS and can change.